Pakistan, S Arabia ink $2.2bn bilateral investment pacts

ISLAMABAD: Prime Minister Shehbaz Sharif hailed on Thursday Saudi Arabia’s over $2 billion investment in Pakistan as the two countries signed several memoranda of understanding (MoUs) to boost bilateral trade and investment.

“The visit of Saudi delegation, headed by investment minister, is important. Crown Prince Mohammed bin Salman has a special interest in the development of Pakistan,” said the prime minister during the MoU signing ceremony.

The prime minister, hailing the investment, said that the bilateral cooperation between both countries will get stronger with time. He said the government would ensure all measures to implement the agreements. “Economic relations and cooperation between the two countries will further increase in the future. Pakistan and Saudi Arabia have decades of brotherly relations,” he added.

PM Shehbaz said the Kingdom has supported Pakistan in every difficult time, adding that the Saudi minister’s visit is an important milestone for strengthening investment and economic relations.

The meeting was also attended by Deputy Prime Minister Ishaq Dar, Chief of Army Staff (COAS) General Asim Munir and federal ministers.

Earlier, Saudi Minister for Investment Khalid bin Abdulaziz Al-Falih announced on Thursday that 27 memoranda of understanding (MoUs) would be signed between Riyadh and Islamabad during his delegation’s three-day visit to Pakistan.

Speaking at the Pakistan-Saudi Business Forum here, he said the ties between his country and Pakistan “have no limits” and the same applies to their economic cooperation. “We must strengthen Pakistan’s economy. Pakistan has quickly stabilised its economy,” the minister added.

A high-level 135-member Saudi delegation, led by the Saudi investment minister, landed in the federal capital a day earlier and is expected to sign agreements worth $2 billion with Pakistan.

Addressing the event participants, the minister underscored the rich history shared between the two countries and said: “We are family, not friends [...] Pakistan, Saudi Arabia [relations] do not need any [formal] agreement [to prove themselves]. Our economy and social values are linked together [....] As many as 2.5 million Pakistanis are working in Saudi Arabia.”

Referring to his interaction with President Asif Ali Zardari and Chief of Army Staff (COAS) General Asim Munir, Al-Falih recalled that the former emphasised the development and expansion of Pak-Saudi friendship, whereas the latter assured of establishment of a single window in the Kingdom for Saudi investments in the country.

Noting the significance of facilitation by the Special Investment Facilitation Council (SIFC) for his country, the Saudi minister said that the army chief insisted on turning the red-tape bureaucracy into a “red carpet” for the Kingdom.

Highlighting that the Kingdom had increased its cooperation and investment in Pakistan, he reaffirmed his country’s resolve to support Islamabad.

Furthermore, Al-Falih acknowledged the Ministry of Commerce’s commitment to enhancing trade relations between the two countries, noting that bilateral trade has already surged by approximately 80pc, rising from $3 billion in 2019 to $5.4 billion.

He also expressed enthusiasm about the announcement from the Saudi crown prince regarding a $5 billion investment in Pakistan, revealed during Prime Minister Shehbaz Sharif’s recent visit shortly after he took office.

“I’m delighted to have the Public Investment Fund (PIF) represented among us,” he remarked. “With the vision, determination, and dynamic private sectors of our leaders and peoples, along with investors from both sides, it is an honour to be a part of this Saudi delegation and to engage with our Pakistani partners,” added the dignitary.

Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar Thursday, citing the government’s efforts for economic stability and existing huge potential for investment, said the country’s economy had been put on the road to sustainable growth to achieve the dream of joining the G20 club as soon as possible.

In his keynote address at the Pakistan-Saudi Business Forum, he recalled that in 2017, the country had achieved the status of top 24th economy with 4pc inflation, below 2pc food inflation, 6pc GDP and highest foreign reserves, pursuing its journey to join the G20, which was derailed due to Covid pandemic and certain internal and external factors.

Dar said Pakistan and Saudi Arabia enjoyed deep-rooted and time-tested relations, marked by shared history, faith and values. He thanked the Saudi leadership for unwavering support to Pakistan on multiple occasions, particularly during the recent economic challenges and reiterated that Pakistan was committed to sovereignty and integrity of the Kingdom and stood shoulder to shoulder with it through thick and thin.

Calling it a “pivotal moment” in the history of bilateral ties, the deputy prime minister said the delegation’s visit manifested the shared vision and enduring partnership between the two countries. He apprised the gathering that the incumbent government was making untiring efforts to bring in economic stability through reforms, widening the tax base, enhancing productivity and competition and promoting private sector investment besides carrying out privatisation of state-owned enterprises.

He said the difficult and unpopular decisions made by the government were yielding positive results as economic indicators were in the right direction showing reduced inflation, narrowing current account deficit and improved rating making Pakistan more attractive for foreign investment and building a stronger, more stable economy for the future.

Dar underscored Pakistan’s potential in sectors such as mining, information technology, agriculture and renewable energy, inviting Saudi investors to participate in these lucrative opportunities. He expressed the confidence that the engagements during this visit would lead to tangible outcomes, further strengthening the economic partnership between the two countries.

Separately, Pakistan and Saudi Arabia Thursday reaffirmed their commitment to enhancing cooperation in key areas including economy, agriculture, mining and information technology.

In a meeting between President Asif Ali Zardari and the visiting Saudi delegation here at the Aiwan-e-Sadr, both sides underlined the need to work together to build a prosperous and peaceful future for the region as well as for the Islamic world, according to a President House press release. Welcoming the delegation, President Zardari emphasized the longstanding and time-tested relationship between Pakistan and the Kingdom of Saudi Arabia (KSA).

He expressed Pakistan’s desire to elevate the bilateral ties into a long-term strategic and economic partnership, underscoring that such collaboration would bring the two brotherly nations further close.

President Zardari reaffirmed Pakistan’s deep respect for the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and reiterated Pakistan’s unwavering commitment to stand in solidarity with Saudi Arabia. He also praised the visionary leadership of Crown Prince and Prime Minister of Saudi Arabia Mohammed bin Salman Al Saud.

The president highly commended the remarkable progress Saudi Arabia was making under Vision 2030 and expressed gratitude for the Kingdom’s continued support to Pakistan during challenging times.

Engr. Khalid bin Abdulaziz Al-Falih said that Saudi Arabia recognised the strategic, geographical significance of Pakistan and its potential for natural resources and renewable energy. He said that Saudi Arabia had planned to invest in the infrastructure and mining sectors of Pakistan and, in this regard, his delegation would sign agreements in different sectors to boost economic cooperation between the two brotherly nations. He expressed the hope that the signing of the agreements would mark a new era of economic cooperation between the two countries. Both sides emphasised to increase collaboration in the areas of agriculture and information technology.

Khalid bin Abdulaziz Al Falih also met Chief of Army Staff (COAS) General Asim Munir here on Thursday. Their meeting focused on matters of mutual interest, particularly initiatives to strengthen ever-growing brotherly bilateral cooperation in a variety of sectors.

The COAS expressed his profound appreciation and gratitude for unflinching support for Pakistan from King Salman bin Abdulaziz Al Saud and Crown Prince Muhammad bin Salman.

“Manifestation of one of the largest business delegation’s visit to Pakistan reaffirms the enduring and fraternal ties between Pakistan and Kingdom of Saudi Arabia,” the Inter-Services Public Relations said in a statement.

He underscored the deep respect and affection that the people of Pakistan hold for the Kingdom of Saudi Arabia. The COAS further assured the delegation of Pakistan’s full support and commitment and conveyed his optimism for the promising outcomes that would mutually benefit both nations.

Separately, federal ministers Jam Kamal Khan, Abdul Aleem Khan, Musadik Masood Malik and Chaudhry Salik Hussain, along with leaders from the private sector, held a meeting with the Saudi delegation led by Investment Minister Khalid bin Abdulaziz Al-Falih here on Thursday.

The meeting focused on enhancing trade and exploring investment opportunities between the two nations, according to the press release issued by the commerce ministry.

Prominent Pakistani companies, including Lucky Cement, Engro and Arif Habib, presented proposals that were well-received by the Saudi side.

The Saudi minister emphasized the joint potential and called for focused collaboration, while also confirming the Saudi participation in Pakistan’s Texpo and a single-country exhibition in Jeddah in 2025. Both sides acknowledged the crucial role of the private sector in driving economic growth and increasing trade volume. The meeting highlighted a shared vision for greater cooperation and mutual prosperity.

Meanwhile, Saudi Arabia’s Investment Minister Khalid bin Abdulaziz said that Federal Minister for Petroleum Dr Musadik Malik was his teacher who taught him how to build industrial clusters in Saudi Arabia, which they followed and now they are proud of their industrial development.

Addressing the Pak-Saudi Business Forum in Islamabad on Thursday, the Saudi minister said: “Musadik mentioned he was a consultant and a subject matter expert. He mentored me and taught me. He was very humble when he called me his boss.”

He further said: “He was actually telling me how to build an industrial cluster in Saudi Arabia, and we took his advice and we are very proud that our industrial sector is booming. It is one of the fastest growing and most competitive certainly in the region.”